Legal analysis: First, if the borrower is a legal person or other economic organization, China's laws prohibit lending between enterprises, and enterprises can lend money to each other for the needs of production and operation. Therefore, if corporate shareholders borrows money from the company for production and operation, the borrowing behavior is legal and effective. The second situation is natural person shareholders. China's "Company Law" and related laws and regulations do not prohibit natural person shareholders from borrowing from the companies they invest in. In judicial practice, they hold a positive attitude towards the lending behavior between individuals and enterprises and are protected by law. Therefore, the borrowing behavior of natural person shareholders to the company should be legal and effective. However, if a natural person shareholder has the qualifications of a director or senior manager at the same time, the company is prohibited from providing loans to him according to the provisions of the Company Law.
Legal basis: Article 115th of the Company Law of People's Republic of China (PRC). The company may not provide loans to directors, supervisors and senior managers directly or through subsidiaries.